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The Finnish cell phone manufacturer Nokia has sued Apple, claiming in the U.S. District Court in Delaware the iPhone violates ten of Nokia's patents of GSM and wireless technology.

In a press release announcing the lawsuit, Nokia notes that it has invested over €40 billion in research and development in handheld and wireless LAN technology. Nokia claims that Apple refused to license Nokia's technology, pointing to the fact that 40 companies are now paying license fees for the use of Nokia's intellectual property. “By refusing to agree to appropriate terms for Nokia’s intellectual property, Apple is attempting to get a free ride on the back of Nokia’s innovation,” said Ilkka Rahnasto, Nokia's VP of Legal & Intellectual Property.

Analyst Gene Munster with Piper Jaffray says he believes Nokia is taking Apple to court as a hardball move to press Apple to start making royalty payments, stating that Nokia and Apple have been in talks over this issue for more than a year. He said that he believes that Nokia will settle for a 1%-2% royalty, which he says would amount to $6 to $12 for each iPhone Apple sells.